Question

In 400 words or more, A research based discussion that presents the relationship between ethical governance, transparency, and organizational stability.

Answer 1

the organizations which are more transparent in nature, follows good ethical governance will get more weightage and brand name in the market than any other in the same field. these two helps the firm to sustain in the market and become one of the most loyal brand to the customers.

best example for this is, TATA Brand in India. most of the stakeholders pressumes that, if Tata is producing a product, it will be more benefitable to its customers than the producer. It is the result of their succesfull survival for the last 8 decades. they are producing many products since independence of India (1947). Now Tata brand is the one of the largest market capitalizing firm in India.

the firms which follows good governance, express the same to all its stakeholders. it helps them to know what is happening in and around the firm. how the things are going on, how the stakeholders are treating by the firm etc. the best practices which comes under good governance are:

• Board responsibilities, rights, meetings and composition
• Review of goals, mission and vision statements
• Board compensation
• code of ethics and whistle blower policy
• accurate financial audit and disclosure and so on

those firms which follow all the above accurtely, most of the times they expose to others. These firms inform the same to all the stakeholders, and reveal what is happening to all. there may not any hidden issues or factors in this and transparent to all. Those firms which follow good governance and disclose the same to all, will gain public trust, support from government and regulator agencies etc. by doing this, most of the stakeholders feel happy and good about the firm.

the employees will be happy with the firm policies

the customers feel happy with the products and services of the firm

the shareholders will be happy with the good returns

the financial institutions and lendors will happy with proper repayment of debts etc